Nature of Bussiness

Question 1

Name an Australian business that has successfully expanded globally.

Answer 1

Westfield, a shopping mall operator, expanded into Europe and the United States.

Question 2

What are some challenges Australian businesses face during global expansion?

Answer 2

Cultural differences, legal barriers, and managing international supply chains.

Question 3

What external factors contributed to the growth of the quaternary industry in Australia?

Answer 3

Advances in technology, and the increased reliance on information services

Question 4

How have external influences contributed to the growth of the tertiary industry in Australia?

Answer 4

Changes in technology and increased consumer demand for services such as healthcare, finance, and education has driven growth

Question 5

Why has the quinary industry grown in Australia?

Answer 5

Social changes, such as an aging population and increased demand for services traditionally done at home, like childcare and hospitality.

Question 6

What problems do stakeholders face when companies go into liquidation?

Answer 6

Employees lose jobs, creditors may not recover debts, and shareholders may lose their investment

Question 7

What are the stages of the business life cycle?

Answer 7

Establishment, growth, maturity, and post maturity

Question 8

How does a business respond to challenges during the growth stage

Answer 8

Expanding operations, improving financial management, and increasing market share. (i.e conglomerate, vertical, and horizontal integration)

Question 9

What are some strategies businesses might use during the maturity stage?

Answer 9

Restructuring/reorganising, product diversification, and maintaining customer loyalty through marketing.

Question 10

What distinguishes a sole trader from other business strucutres

Answer 10

A sole trader is owned and operated by one individual who has unlimited liability

Question 11

How does a partnership differ from a sole trader

Answer 11

A partnership is owned by 2-20 people, sharing responsibilities and workload.

Question 12

What is the key advantage of a private company?

Answer 12

Limited liability for shareholders, and the ability to attract capital through private invesments.

Question 13

What is a government enterprise?

Answer 13

A business owned and operated by the government, such as Australia Post

Question 14

What are external influences that affect businesses?

Answer 14

Economic, financial, geographic, social, legal, political, technological, and competitive factors

Question 15

How do internal influenes impact a business

Answer 15

Internal factors like management, product, business culture, and location will shape the success of a business.

Question 16

What is a stakeholder in a business

Answer 16

An individual or group affected by or interested in the activities of a business, including employees, customers, and shareholders

Question 17

What are primary indsutries

Answer 17

Invovled in the extracting of natrual resources

Question 18

What factors influence the choice of legal structure for a business?

Answer 18

Size, owernship, and finance

Question 19

What is the main goal during the establishment stage of a business?

Answer 19

To create a solid foundation and establish a customer base

Question 19

What strategies are appropriate during the growth stage of a business?

Answer 19

Expanding operations, introducing new products, and improving financial management

Question 20

How do businesses handle change in the post-maturity stage?

Answer 20

By renewing business operations through innovation, or maintaining operations if the business remains steady.

Question 21

What is voluntary cessation in business?

Answer 21

A business owner voluntarily decides to cease operations, due to reterming or sale

Question 22

What is involuntary cessation?

Answer 22

When a business is forced to cease operations due to financial insolvency or liquidation

Question 23

What is liquidatoin?

Answer 23

The selling off a company’s assets to pay back creditors with its unable to meet its financial obligations

Question 24

What are the main causes of business decline?

Answer 24

Poor management, lack of financial control, inadequate market research, and external economic conditions

Question 25

What are some business strategies for overcoming maturity challenges?

Answer 25

Revamping products, exploring new markets, and improving operational efficiency.

Question 26

What role does innovation play in business success?

Answer 26

Innovation helps businesses stay competitive by improving products and processes or developing new offerings.

Question 27

How does entrepreneurship drive business growth?

Answer 27

Entrepreneurs bring ideas, take risks, and innovate, which can lead to business expansion and market disruption

Question 28

What are the advantages of limited liability in business?

Answer 28

Limited liability. Owners are not personally responsible for the debts of the business beyond their investment in shares

Question 29

How does the competitive situation influences a business?

Answer 29

A highly competitive market forces businesses to innovate, lower costs, or differentiate their products to gain an advantage.

Question 30

What external economic factors influence business operatoins?

Answer 30

Interest rates, inflation, consumer confidence, monetary and government fiscal policies.